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For-Profit Colleges Sue to Block ‘Gainful Employment’ Regulation

July 20, 2011, 2:27 pm

Continuing its vigorous legal challenge of Education Department regulations, the Association of Private Sector Colleges and Universities, the main lobbying group for for-profit colleges, filed suit today in federal court to block the department’s “gainful employment” rule. The wide-ranging regulation, which will cut off federal student aid to programs that fail to meet benchmarks for their graduates’ loan repayment and debt-to-income ratios, was issued last month in what many observers said was considerably softer form than originally proposed. But the for-profit association, which mounted a fierce lobbying campaign against the rule, said it was still unsatisfactory. The policy represents “regulatory overreach,” it conflicts with the intent of Congress, it was developed through a “flawed process,” and it was created “without adequately exploring the impact on minorities, women, and jobs,” according to a news release the association issued. The group’s lawsuit followed by two days its announcement that it would appeal a federal judge’s upholding of two other regulations, which bar deception in college recruiting and ban commissions for college recruiters.

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  • Guest

    Face it.  For-profits are snakes stealing from their students.

  • fullprof99

    From all of us, actually, since the dollars are coming from the taxpayers, not from the students.

  • glim1700

    Lower enrollment at proprietary schools equal lower student loan defaults equal less taxpayer subsidies. What’s wrong with that?

  • saasaa

    What ever happened to not judging a book by its cover?  Or judging the collective by the actions of one.  Not all for-profits report back to stock holders and make “big bucks” for their owners.  There are many of them who are about education, about finding jobs for their students upon graduation and about program integrity.  One of the many reasons that for-profits have such a high cost is because they are not eligible for any state or federal subsidies.  Simply put, they have to cover their basic operating costs some way.

    On the other hand, there are many of the larger for-profits that make all for-profits look bad. They make millions of dollars per year, they admit anyone with a pulse, they care not if their students can even read beyond the third grade level, and they push their students toward debts they cannot pay.  Why not take out those few instead of beating down all schools with that classification? 

  • sthen

    An excellent reply to a gross generalization. Being part of a for-profit school (which is hard to say on these comment boards, as I seem to get ganged up on frequently), I am more likely to admit the truth than to hide from it. I have a morality factor that I live with, and if I cannot trust my company to do right, then I will not stand by its side. I couldn’t imagine my school using aggressive “sales” tactics to garner “recruits”. It’s horrendous to think any school needs to go to such lengths for a dollar.

  • willynilly

    The last three comments above from glimm1700, antiutopia anf fullprof99 are equivalent to a dart thrown into the dead center of the Bullseye.

  • jmwh7018

    Well said.  I don’t work at a for-profit, but I do work for a private, non-profit trade school we are subject to the same regulations, and I have many colleagues in my professional network who work in the for-profit sector.  Without exception, they are committed to their students and would never admit a sub-par student just to get their financial aid money for a term or two.  They actually care about their graduation rate and choose to keep it high by only accepting students who are capable of completing their studies.  None of them would ever sully their own reputations by working for a school completing lacking in integrity.  There are a few big offenders, but those schools and their accreditation agencies should be reviewed.  The intent of all of this new legislation is great and I fully support making sure all students are informed before they make such a major decision.  The fact that it doesn’t apply to similar schools using similar practices with a different tax status is ridiculous.  I have seen far worse recruiting methods and dishonesty from state-run universities and community colleges, with much more dismal student outcomes, and they need to be held accountable, too.

  • wayoutwest

    I understand that benevolent for-profit schools and their employees feel unfairly targeted by gainful employment legislation and criticism on discussion boards, but for-profit schools doing right by their students shouldn’t fear these regulations. Taxpayers and educators will be far less critical of the sector (large and small) once sound regulation is put into place.

    As for “gross generalizations,” it isn’t “gross” to generalize that for-profit higher ed needs regulating. The vast majority of students enrolled in for-profit higher ed are enrolled in one of the massive institutions that line their pockets at the expense of taxpayers and misled student-customers.

  • studentperspective

    Fair enough but let’s face it, the big names in the industry are getting some well-deserved bad press. The facts are the facts and bad behavior from the so-called bad apples must be stopped.

  • http://www.facebook.com/follansbeem Meghan Follansbee

    Please help petition  against colleges  to block Gainful employment in any  and all communities. With Debt Crisis all areas are deeply affected, and their will Huge deficits to overcome. Help to speak up against what we are faced with everyday. Thanks, Meghan

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